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Thread: Tax, Gst, Etc

  1. #1
    Member collingwood's Avatar
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    Default Tax, Gst, Etc

    KURA ALL,

    I've been slowly doing all the paper work etc in setting up my own lawnmowing business. I'm not starting until early 2007 in Beechboro, Perth (after my honeymoon!!). I've been chefing for the past 12 years & now want to be my own boss, so the harder i work the more rewards I GET. To start with i'm going to mow etc as much as possable while still chefing casual...........So any way the reason i'm writing this is to ask everyone that when you first started out from scatch did you start straight away with an ABN? when you had know or very little clients to start with. Or did you wait till you had it least 50 to 70 clients & then get a ABN? What would be the best way?? ALSO is it true you dont need to pay GST until your earning $50,000 plus a year? And in the second year in business do you then pay your TAX & GST evey three months. If so do you need a business a/c or can you just use a savings a/c???
    Keen to here from every one.

    Cheers!!

    KIWI

  2. #2
    Member Hustler's Avatar
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    Default Re: Tax, Gst, Etc

    Just do the right thing from the start A.B.N etc as i have been going three years there are still new things to learn .I had a visit from the tax department last week i rang and asked some questions and they have a free service that they will come to you and advise you how to go about things . They do not advertise that they do this but it was a great help . its made it easyier to do a lot of things regarding book work . if you do the right thing they will leave you alone.
    Last edited by administrator; 07-10-2006 at 08:23 AM.

  3. #3
    Member collingwood's Avatar
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    Default Re: Tax, Gst, Etc

    Cheers Nev, this info will help!

  4. #4
    Translawner administrator's Avatar
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    Default Re: Tax, Gst, Etc

    Thats correct if u are going to stay under the 50 thousand dollar threshold then you will not have to collect gst

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  5. #5
    Senior Member twin_cities_lawncare's Avatar
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    Default Re: Tax, Gst, Etc

    Kiwi
    I agree with Nev - it's best to get your ABN up and running from the very beginnining. Some companies only deal with registered businesses, so it pays to be registered, and also insured, for the very same reason.
    The GST issue is a bit gray - we bought our business in September last year and were told it was likely to bring in $52k p.a., meaning for the first year, we mightn't reach the GST threshold. Thankfully we opted to charge/remit GST from the beginning tho, as we went over the magic $50k and would've had to pay the GST out of our own pocket from what I hear. GST can be paid optionally - most pay it monthly/ quarterly, but it can even be done annually I think. (We pay it monthly, so it doesn't accumulate into too much of a debt.)
    If you can set up a special bank account for your business earnings and have a cheque book attached to it, it will be easier to keep the paperwork in order. We have a separate account off our main account without having established a business account per se, so money is paid to us personally, even tho we also have a *t/a Twin Cities Lawncare* tag-on phrase as well. We have been encouraging most of our non-cash customers to deposit their payments into our bank account directly, adding the invoice number/s for reference, and this saves us having to physically bank their cheque and add extra time to the overall payment process.

    All the best for the new venture/s (marriage being the biggest of all)
    Christine
    Ciao for now ~ Christine
    senior partner of "Townsville Lawn Care"

    "Twin Cities Lawncare" was re-named in 2008
    due to the amalgamation of two local councils -
    Due to confusion of previous/current business name,
    I'm opting to post in here as Christine Wharton now

  6. #6
    Translawner administrator's Avatar
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    Default Re: Tax, Gst, Etc

    Collingwood invest some good Aussie dollars and find a good accountant answers on these matters are best to be answered by experts as Nev has pointed out .They may even set you up with a computer programme so at the end of the month u email the details to them .Yes i know how great is that .
    Forums are a good place to get ideas of what to do but not all suggestions are fact.

    Tax legislation is changing every hour.

    Accountants have trouble keeping up .

    Also if u are starting up from scratch i would test the market part time as a hobby if u like to see if you will be suitable for this line of work no point in spending thousands of dollars chucking in your job and finding its not for u and the same applies if you are going to purchase a round . Lawnmowing Landscaping is a tough demanding beast .
    Common sense is the best business partner u can have



    TIP
    THE ONLY PARTNERSHIP IS A SINKING SHIP
    Last edited by administrator; 07-10-2006 at 09:16 AM.

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  7. #7
    Tim from HMS
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    Default Re: Tax, Gst, Etc

    I Kiwi,

    We just recently set up the business too and we decided to register for an ABN. You can just get the ABN without registering for GST as we figured we would be unlikely to hit the $50K in the first year starting from scratch.

    You can always go back on-line and register for GST later. Just note that if you don't register for GST then you are not allowed to issue a Tax Invoice. We just do sales receipts which state our ABN as part of the company logo and most businesses are happy with that.

    We have found that the commercial businesses we do definately insisted we have an ABN.

    We are about to start a marketing campaign to Body Corporate Management companies and they all want to know an ABN.

  8. #8
    Member collingwood's Avatar
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    Default Re: Tax, Gst, Etc

    Kura To All You Aussie Boyzzz..& Girlzzz!...


    All this info has been really helpful..!

    BUT>> To the ADMINISTRATOR...I,ll see you at the Finish Line!!...


  9. #9
    Translawner administrator's Avatar
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    Default Re: Tax, Gst, Etc

    lololol Collingwood I HAVE YOUR NO 1 RIBBON READY

    Go the pies

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  10. #10
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    Default Re: Tax, Gst, Etc

    the gst option is now $75000 as of ist july 2007

  11. #11
    Translawner administrator's Avatar
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    Default Re: Tax, Gst, Etc

    More money in your pocket ian

    Great government

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    Carrum downs Dandenong Doveton

  12. #12
    Translawner administrator's Avatar
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    Default Re: Tax, Gst, Etc

    Quote Originally Posted by twin_cities_lawncare
    Kiwi
    I agree with Nev - it's best to get your ABN up and running from the very beginnining. Some companies only deal with registered businesses, so it pays to be registered, and also insured, for the very same reason.
    The GST issue is a bit gray - we bought our business in September last year and were told it was likely to bring in $52k p.a., meaning for the first year, we mightn't reach the GST threshold. Thankfully we opted to charge/remit GST from the beginning tho, as we went over the magic $50k and would've had to pay the GST out of our own pocket from what I hear. GST can be paid optionally - most pay it monthly/ quarterly, but it can even be done annually I think. (We pay it monthly, so it doesn't accumulate into too much of a debt.)
    If you can set up a special bank account for your business earnings and have a cheque book attached to it, it will be easier to keep the paperwork in order. We have a separate account off our main account without having established a business account per se, so money is paid to us personally, even tho we also have a *t/a Twin Cities Lawncare* tag-on phrase as well. We have been encouraging most of our non-cash customers to deposit their payments into our bank account directly, adding the invoice number/s for reference, and this saves us having to physically bank their cheque and add extra time to the overall payment process.

    All the best for the new venture/s (marriage being the biggest of all)
    Christine

    Threshold is now 75000 smackers

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    As they support this forum




    Carrum downs Dandenong Doveton

  13. #13
    Senior Member twin_cities_lawncare's Avatar
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    Default Re: Tax, Gst, Etc

    $75,000 should be a better threshold for the smaller operator to work with, options-wise...
    Ciao for now ~ Christine
    senior partner of "Townsville Lawn Care"

    "Twin Cities Lawncare" was re-named in 2008
    due to the amalgamation of two local councils -
    Due to confusion of previous/current business name,
    I'm opting to post in here as Christine Wharton now

  14. #14
    Very Helpful Member
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    Default Re: Tax, Gst, Etc

    Income tax returns are the most imaginative fiction being written today.[ Herman Wouk]
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  15. #15
    Senior Member twin_cities_lawncare's Avatar
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    Default Re: Tax, Gst, Etc

    Only a month to go before all the paperwork needs to be done for last financial year's tax...unless you are using a professional to do it for you.
    It helps to have all your documentation (receipts, etc) saved in case the taxman asks for the facts eh? I think they prefer that to fiction.
    Ciao for now ~ Christine
    senior partner of "Townsville Lawn Care"

    "Twin Cities Lawncare" was re-named in 2008
    due to the amalgamation of two local councils -
    Due to confusion of previous/current business name,
    I'm opting to post in here as Christine Wharton now

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